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American Households Ramp Up Borrowing as July Credit Data Tops Forecasts
(MENAFN) Borrowing by US consumers picked up more sharply than analysts had expected in July, with a surge in non-revolving credit driving the gain, the Federal Reserve reported Tuesday.
Total outstanding consumer credit grew by $18.1 billion for the month, extending a revised $14.6 billion rise in June and blowing past Wall Street's forecast of an $11.3 billion increase. That pushed the total pool of consumer credit to roughly $5.19 trillion.
Measured on an annualized basis, credit growth quickened to 4.2% in July from 3.4% the month before.
The main driver was non-revolving credit — covering auto loans, student loans and other installment-type borrowing — which surged $15.3 billion, its steepest monthly climb in three years. On an annualized basis, that segment grew 4.8%, nearly double June's 2.5% rate.
Credit card balances and other revolving debt rose more modestly, up $2.8 billion for the month. Annualized growth in that category cooled to 2.5%, down from 6% in June.
Total revolving debt now stands at close to $1.36 trillion, while non-revolving debt has climbed to roughly $3.83 trillion.
The Fed's monthly snapshot tracks most forms of borrowing by individuals but leaves out mortgages and other loans tied to real estate.
Total outstanding consumer credit grew by $18.1 billion for the month, extending a revised $14.6 billion rise in June and blowing past Wall Street's forecast of an $11.3 billion increase. That pushed the total pool of consumer credit to roughly $5.19 trillion.
Measured on an annualized basis, credit growth quickened to 4.2% in July from 3.4% the month before.
The main driver was non-revolving credit — covering auto loans, student loans and other installment-type borrowing — which surged $15.3 billion, its steepest monthly climb in three years. On an annualized basis, that segment grew 4.8%, nearly double June's 2.5% rate.
Credit card balances and other revolving debt rose more modestly, up $2.8 billion for the month. Annualized growth in that category cooled to 2.5%, down from 6% in June.
Total revolving debt now stands at close to $1.36 trillion, while non-revolving debt has climbed to roughly $3.83 trillion.
The Fed's monthly snapshot tracks most forms of borrowing by individuals but leaves out mortgages and other loans tied to real estate.
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